If all prices and income change by the same proportion:
A. the budget line shifts out.
B. the budget line shifts in.
C. the budget line rotates outward.
D. the budget line doesn't change.
D. the budget line doesn't change.
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In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CPI was 100.0 in 2008 and 107.5 in 2012, Cameron's 2012 real income is
A) $35,000. B) $32,558. C) $32,000. D) $37,625. E) $34,400.
The Kahneman-Tversky value function shows that a gain of $100
A. would be offset in one's mind by a loss of more than $100. B. would be offset in one's mind by a loss of less than $100. C. would be offset by a gain of $100. D. is valued less than two gains of $50.
When interest rates are higher, consumers will....
What will be an ideal response?
If the percentage change in quantity supplied is 5%,and the percentage change in price is 10%, then the supply for the good is
A. elastic. B. inelastic. C. perfectly inelastic. D. unit elastic.